Emirates Central Cooling Systems Corporation (Empower) has announced the price range and start of the subscription period for its Initial Public Offering (IPO) on the Dubai Financial Market (DFM).
The price range for the Offering has been set between AED1.31 and AED1.33 per share, a company statement said on Monday.
The total Offering size is expected to be between AED1,310 million (US$357 million) to AED1,330 million ($362 million), implying a market capitalisation at a listing of between AED13,100 million ($3,567 million) and AED13,300 million ($3,622 million).
Ahmad bin Shafar, Chief Executive Officer of Empower, said,
"Empower has a proud history of pioneering sustainable cooling technology in the UAE and has played an integral role in supporting the growth of Dubai. As the largest district cooling provider in the world, Empower is inherently linked towards Dubai's wider energy transition goals, including the Dubai Integrated Energy 2030 Strategy.
"Since announcing our intention to float on the DFM, we are extremely pleased to have received strong interest from investors. Amid Dubai's expansion plans, a robust growth in residential real estate supply and a booming hotel capacity, we believe Empower presents a unique and attractive investment proposition for all investors."
Based on the dividend policy approved by the Board of Directors, which is expected to be a minimum dividend amount of AED850 million paid in 2023 or AED0.085 per share, the offer price range implies a dividend yield within the 6.4% to 6.5% range.
The statement added that 10% of the total issued share capital of Empower (equivalent to a total of 1,000,000,000 shares) are being made available via the Offering, with the Selling Shareholders reserving the right to amend the size of the Offering at any time prior to the end of the subscription period at their sole discretion, subject to applicable laws and the approval of the Securities and Commodities Authority (SCA).
All the Shares are existing shares, with DEWA and Emirates Power selling 7% and 3% of the total issued share capital, respectively. The Company will not receive any proceeds from the Offering.
Following the Offering, and subject to the size of the Offering not being increased, the Selling Shareholders (DEWA and Emirates Power) will continue to hold a stake of 63% and 27%, respectively.
News Source: Emirates News Agency